The Indian stock market has been experiencing bearish trends lately, but Forge Auto International made an impressive debut on the NSE SME Emerge platform. However, profit booking soon put pressure on the stock, resulting in a drop in its price. Here's a detailed look at the stock's performance and what this means for those looking to invest in stocks.
Forge Auto International's positive debut on NSE SME
Forge Auto International made its entry onto the NSE SME Emerge platform with a starting price of ₹113 per share. In a matter of seconds, the stock touched an intraday high of ₹115 per share, showcasing early signs of strong market interest. Despite the initial momentum, the stock could not hold onto these higher levels.
The SME stock soon came under pressure from profit-booking, which led to a swift drop in the share price. It touched an intraday low of ₹107.35 apiece, eventually locking in a 5% lower circuit. This indicates the challenges faced by companies debuting in a volatile market, particularly for those looking to invest in stocks within the SME space.
Overview of Forge Auto International IPO performance
The IPO for Forge Auto International opened for bidding on 26th September and closed on 30th September 2024. During the three days of its IPO bidding, the public issue garnered significant attention, with an overall subscription of nearly 50 times. This high level of demand reflected strong investor confidence in the company, marking it as a potential stock to watch for those who actively invest in stocks.
The Forge Auto International IPO was a fresh issue, offering 28.8 lakh shares and raising a total of ₹31.1 crores. The price band for the IPO was set between ₹102 and ₹108 per share, making it accessible for retail and institutional investors alike. A minimum lot size of 1,200 shares was required for an application, equating to an investment of ₹1,29,600.
Day-by-day subscription analysis of Forge Auto International IPO
The Forge Auto International IPO saw a remarkable surge in demand across its three-day bidding window. On the first day, the public issue was subscribed to 4.61 times. By the second day, the subscription rate had surged to 11.27 times, and by the final day, the IPO had closed with an overall subscription of 49.28 times. These figures suggest strong market anticipation for the company's stock, which is a positive sign for those who plan to invest in stocks with a long-term view.
Challenges after listing: Lower circuit trigger
Despite the strong demand during its IPO, Forge Auto International faced challenges immediately after listing. The stock experienced profit-booking shortly after its debut, which drove the price down to ₹107.35 per share. This triggered a 5% lower circuit, indicating that the stock could face volatility in the near term. Investors should remain cautious when deciding to invest in stocks like this, particularly in the SME space, where price fluctuations can be more pronounced.
Conclusion
Forge Auto International's strong debut, followed by a swift lower circuit, demonstrates both the potential and risks associated with SME stocks. For those looking to invest in stocks, this company may offer long-term growth opportunities, but short-term volatility should be addressed. As the company continues to navigate its post-IPO journey, investors will need to assess the stock's performance carefully before making any major moves in the market.
For android only